A.M. Best Affirms Ratings of State Auto Insurance Companies; Affirms Debt Rating of State Auto Financial Corporation
04 February 2006 - 5:00AM
Business Wire
A.M. Best Co. has affirmed the financial strength ratings (FSR) of
A+ (Superior) and issuer credit ratings (ICR) of "aa-" for State
Auto Insurance Companies (State Auto) (Columbus, OH). A.M. Best has
also affirmed the debt rating of "a-" on the $100 million 6.25%
senior unsecured notes issued by State Auto Financial Corporation
(NASDAQ: STFC) (Columbus, OH) and its ICR of "a-". The outlook for
all ratings remains stable. The ratings reflect State Auto's strong
capitalization, favorable earnings trend and excellent regional
market franchise. These attributes reflect its long-standing market
presence, well-established agency relationships, diversified
product offerings and adherence to sound underwriting fundamentals.
Somewhat offsetting these positive rating factors include
variability in operating results, which is reflective of
weather-related losses as storm loss frequency and severity have
trended higher in recent years. In addition, the group has debt
servicing requirements due to the above mentioned debt issuance,
which could put a strain on future earnings. However, State Auto
implemented numerous initiatives to improve earnings that included
re-underwriting, pricing adjustments and agency management actions.
As a result of these actions, firm market conditions and the recent
improvement in loss reserve development related to the Meridian
business, State Auto has reported favorable operating results
during the past three years. The FSRs of A+ (Superior) have been
affirmed and ICRs of "aa-" have been assigned with a stable outlook
for the following members of State Auto Insurance Companies: --
State Auto Florida Insurance Company -- Farmers Casualty Insurance
Company -- Milbank Insurance Company -- State Auto Property and
Casualty Insurance Company -- State Auto Insurance Company of
Wisconsin -- State Auto National Insurance Company -- State
Automobile Mutual Insurance Company -- State Auto Insurance Company
of Ohio -- Meridian Citizens Mutual Insurance Company -- Meridian
Security Insurance Company The following debt rating has been
affirmed with a stable outlook: State Auto Financial Corporation--
-- "a-" on $100 million 6.25% senior unsecured notes, due 2013 For
Best's Debt Ratings, all other Best's Ratings, an overview of the
rating process and rating methodologies, please visit
www.ambest.com/ratings. A.M. Best Co., established in 1899, is the
world's oldest and most authoritative insurance rating and
information source. For more information, visit A.M. Best's Web
site at www.ambest.com.
State Auto Financial (NASDAQ:STFC)
Historical Stock Chart
From Jun 2024 to Jul 2024
State Auto Financial (NASDAQ:STFC)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about State Auto Financial Corporation (NASDAQ): 0 recent articles
More A.M. Best Co. News Articles